Edmunds.com | Inside Line | Auto Observer Your Account | Help | Directory
You are here:
![[F]](http://a332.g.akamai.net/f/332/936/12h/www.edmunds.com/media/townhall/webxicons/site.gif){kind=small}
Forums
Automotive News & Views Do You Favor A Government Loan To The Detroit 3?
3958 messages, Last post on Oct 02, 2009 at 4:52 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
|
Replying to: gagrice (May 06, 2009 3:09 pm)  Regards, OW |
|
|
Replying to: kdhspyder (May 06, 2009 4:18 pm) The Obama administration has already acknowledged that it likely won't recoup $4 billion it lent to Chrysler this winter, conceding the loan was made to a deeply leveraged company "where there was probably never much hope of seeing much recovery." In addition, Chrysler probably won't be able repay in full $4.5 billion in bankruptcy financing from the U.S. and Canadian governments, an adviser to the auto maker said at a court hearing earlier this week Sayonara bailot $$$$.  Regards, OW
|
|
|
Replying to: tlong (May 06, 2009 10:33 pm) As General Motors (GM) teeters on the edge of bankruptcy, there are issues at play that are unique in today's market, and bring to the forefront some somewhat unknown financial instruments that are causing some bond-holders to root for the auto-maker to go belly up. So, the hot air or gas is about to have a match put to it in a few weeks, like it or not...after all, what's a few billion dollars among friends, RIGHT?  Regards, OW |
|
|
Replying to: circlew (May 07, 2009 3:47 pm) If they can't ... then yes our loans/investments are at severe risk. I think though that making a profit with the right structure is not all that hard to do. It's not a really complicated business if the structure of the company is correct. We the public love our vehicles we are willing buyers. Whether we can recover the full $8.5 Billion that will have been dumped into Chrysler or the $30 Billion that will be the final tab at GM remains to be seen. The alternate is cratering the economies of several Midwestern states and dumping nearly a million retirees on the healthcare systems and their pensions on the PBGC.
|
|
|
Replying to: kdhspyder (May 07, 2009 4:10 pm) ANY new business model that becomes viable will never support the old economies of those states. I said long ago that the wasted money shoveled to GM and C should have supported the folks on the freight train, not a failed business model that should have died 5 years ago. Simply, bad decisions were made. There is no need to ask a Supreme Court Judge, Congress or the President of the United States to clearly see that. Like I said, buying a car from these companies is a shade of a Ponzi scheme, IMHO. You already lost your money going in!!! Regards, OW |
|
|
Like a Ponzi scheme, each day engulfs more unsuspecting victims. If G.M. does have to file for bankruptcy protection, Mr. Young emphasized that the automaker would need to emerge quickly from the court proceedings to prevent sales from falling considerably more than they already have in recent months. He said that consumers worldwide already have shown hesitation toward G.M. products because of the potential for bankruptcy and that a prolonged court-supervised reorganization would hurt G.M.’s future prospects. Could'a Should'a Would'a filed in December 2008 so we could be on the upside by now in a new business entity but who knew??  Regards, OW |
|
|
|
|
Replying to: kdhspyder (May 07, 2009 4:10 pm) And that is already happening. The shutdowns for both companies are having a ripple effect through many communities having supplier companies providing many jobs for them. The suppliers are cutting back. Behr in Dayton supplies thermal products to Chrysler (and others) is laying off people temporarily--at least we hope temporarily. |
|
|
Replying to: steve_ (May 06, 2009 7:46 pm)
|
|
| ...in Philadelphia's Grays Ferry section just laid-off 265 workers. With all these people out of work nationwide, who the heck is going to buy cars? Buying food and keeping a roof over your head is going to be a challenge! | |
|
Replying to: dave8697 (May 07, 2009 5:57 pm) I am not sure in what contexts you mean the above, but to me that is almost completely the opposite (almost EVERYTHING). I know the big three have always offered so called employee discounts. But if it were not for finance companies like GMAC, my question would be: how many "employees" could, would, should buy their big three vehicles cash? Lemko's point is reflected in the MY's projection from 16-17 M MY sales in good years to 10 M (min of -40% decline) . Now keep in mind this was "PRE" lay off policies. Now that we know that unemployement is 9/10%, would anybody reasonably expect them (30 M as a min affected people) to buy new cars? I am sure there ARE exceptions, but my guess is for a very low percentage.
|
|
You are here:
Forums
Automotive News & Views Do You Favor A Government Loan To The Detroit 3?
New? Join Now!
Forum Tools
Search Forums
Browse by Vehicle
Browse by Board
Browse by Topic
Today's Chats
